According to a recent report from the American Bar, home ownership rates amongst millennials continue to be on the decline, dropping 7.3 percent over the last decade. Unfortunately, this isn’t a huge shock, as the housing affordability crisis worsens and new housing policies aren’t proving effective. But what are the causes behind these issues?
First off, it’s a common case of supply and demand. This was conveyed during NAHB’s 2018 Housing & Economic Outlook, as panelists cautioned that demand will continue to outpace construction due to labor and land availability constraints. Meaning, new entry-level buyers (like millennials) will have to contend with rising home prices and mortgage rates.
Additionally, prices in many of the popular metro areas that millennials are flocking to are exorbitant, forcing young renters to spend a substantial amount of their income on cost of living alone, thus preventing them from saving to buy a house. This combined with higher student loan burdens and lower wages makes attaining the American dream of homeownership a near impossibility.
In response to the affordability crisis in relation to rising student loans, some homebuilders are enacting programs to help millennials get out of student loan debt in order to help them finance a home mortgage (USA Today). However, financial planning experts are warning that these programs are simply swapping out student debt for mortgage debt, thus providing no long-term financial benefits. Though the program’s mission seems to take steps to solve the problem, many are calling its approach questionable.
An issue beyond housing affordability is that when millennials are finally able to purchase a home, many times they are not financially prepared for upkeep, and repair/remodel projects.
One way to prepare is having a substantial amount of savings put away for these residential “big ticket” items. Another is to take the time to choose a home (and what it’s built with) wisely. Value-added products like the LP® SmartSide® trim and siding are durable and protect against harsh weather conditions that could cause the need for more frequent upkeep and spending in the long run.
So, while the general rule of thumb remains that a quarter of your income should go to housing payments/rent, in reality, the economic cards are stacked against millennials across America. In the coming years, millennials who are set on purchasing a home may gravitate to more affordable, less sought-after cities with affordable housing. However, until home purchases amongst millennials start to rise, builders are making business adjustments to service other demographics who have the means to invest in home buying today.
If you’re considering an exterior home remodel this spring or summer, now is the perfect time to start planning. Whether you want to take on a simple exterior remodel or totally change the exterior of your house, being prepared and building a detailed home project plan can help reduce your stress and help keep you on budget.Continue Reading
While LP® SmartSide® Trim & Siding is easier to install, builders may feel pressured to skip a second look at installation guidelines in order to get a project complete on time or makeup for labor shortages. However, whether you’re a new or longtime LP SmartSide Trim & Siding user, taking the time to be attentive to proper installation will ensure you are upholding your product warranty and avoiding potential issues down the road.
Performance is written into everything we do at LP Building Solutions. This goes beyond the way our team members do their jobs, how we manufacture our products and the drive to deliver building solutions. We also watch, measure and steward our environmental performance. Sustainable sourcing and energy efficiency are just two ways we act as stewards of our environmental performance, but recently Ducks Unlimited Canada (DUC) and LP signed a landmark conservation agreement to support 6.2 million acres in Manitoba’s boreal forest. This agreement is the culmination of an 18-year partnership between the two organizations that was jointly released in January 2020.
It’s hard to imagine we’re living in the year 2020. While we’re not surrounded by robotic butlers and flying cars, home design trends in 2020 will feel revolutionary in style, texture and color. Whether you’re looking at new home building trends for 2020 or want to update your current home’s exterior design, we’re tackling your biggest design questions and providing ideas for inspiration.